Data Communications Management (DCM-T)

These results were mostly pre-released in February and our comments in the link still apply. 
Debt is going down, growth has accelerated and it is becoming highly profitable. 
It took a while, but the highly committed management team (which we like) is starting to put things together nicely here and the new acquisition should keep momentum going in the medium term.  
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In addition to the recent acquisition, which investors seem to love, the company came out with preliminary numbers for 2022. 
Sales rose 15%+, EBITDA rose 41%+ and more important debt declined 35%. 
The management team (33% ownership) has done a very good job improving profitability during a rough macro environment. 
This is still a management bet here. 
But they have made us lots of money on past ventures (when we could buy Canadian stocks) and we would still be OK investing with them, for very high risk investors (it is still a small company with lots of debt). 
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This is a small company that he has focused on as a Top Pick in the past. The turnaround for the company is definitely taking traction now. They recently did an acquisition that will take it into better opportunities. He thinks this stock could get to $3-$5.

(A Top Pick March 29/17, Down 27%) He still owns it. It is a turnaround story that is taking longer than he would have liked. They are transitioning their business away from print. Their financial results have really turned. They are extremely undervalued. The market has not picked up on this turnaround. He looks for good things this year.

It has turned the corner. The stock price still does not reflect the opportunities and financials. They have a fair amount of debt to pay down. They are extremely undervalued. As long as they continue to execute this turnaround, it could easily be in the $2.50 to $3 range.

(A Top Pick Oct 20/16, Down 74%) This is a turnaround story. The chart is ugly and he was early. Print ad mail is in decline. They are getting into the large print type world like the ads on the side of busses. He thinks their upside is tremendous.

(A Top Pick Aug 19/16. Down 68%.) Still believes in this and is adding to his holdings at these levels. A turnaround story. Management has guided towards EBITDA of $18-$20 million for 2017. Where can you find a company with a market cap of about $25 million that has $275 million of revenue with an EBITDA of in the $18-$20 million range trading at a valuation of $25 million? Extremely undervalued. Thinks this could get up to the $3-$4 range if they are able to execute. They’ve shown indications of becoming consolidators in the industry. If they are able to pick up some assets for a reasonable price and achieve some economies of scale, they could be even greater than that.

Third time as a top pick. They went through financial difficulties last year. They are in the print media business. They have been busy cutting costs and right sizing the company, closing a few plants. In January they came out with good news and traded up about 60%. The subsequent quarterly results were somewhat disappointing. The market is taking a wait-and-see approach, but he is confident they can reach their stated goals.

(A Top Pick Aug 19/16. Up 22.97%.) He continues to really like this.

This has gone through some restructuring, and is a valuation play for him. They meet his criteria of high ROE, but not necessarily the 3 years running that he likes to see. Sees it as a bit of a turn around play. Had a nice run of late, but are trading at only 6X earnings. On his models, he is looking at FV of around $10-$12. As they pay down debt and continue to right size the company, he is very optimistic on the stock price.

This is a “value” pick. Trading at about 4X earnings. They went through an extensive restructuring earlier in the year. However, coming out of this restructuring, they got an excellent CEO, who has not only agreed to stay on to see the company through the next phase of their restructuring, but also made a significant investment in the company. Revenues have not been increasing at a rate he would like. Some of their business is related to areas that are perhaps declining. A negative overhang would be an impending postal strike. If they are able to continue with the restructuring and pay down the debt, he could easily see the valuation north of $10.